THE National Highways Authority of India (NHAI) is facing arbitration claims of over Rs.11,084 crore in tribunals and various courts. Of the total disputes, 1,099 disputes amounting to Rs.10,219.13 crore are in tribunals and 536 disputes amounting to Rs.865.40 crore are in various courts. Majority of these disputes are in the Engineering Procurement and Contract (EPC) projects. A company executive, who did not want to be identified, claimed a major part of the claims are in favour of the road developers. “Around 1,376 disputes amounting to Rs.9,200 crore are in favour of the road developers and have been stuck in tribunals,” said the executive. He further explained the cost of various projects increase because of change in design due to one problem or the other. “First, NHAI gave approvals for change in design but when it came to compensating for the same, they were reluctant to clear it,” he added. On the other hand, NHAI says the change in design does not amount to change in the rate of building roads. “The disputes will be heard and we will put our case. We will pay the money where we will be ordered to,” said a senior NHAI official, speaking on condition of anonymity. Taking forward the BK Chaturvedi (BKC) Committee recommendation, the Empowered Group of Ministers (EGoM) on highways recently allowed the formation of a committee headed by a retired High Court judge to fast track the resolution of the disputes. Under the procedure for dispute resolution, NHAI first goes to the arbitration board, which constitutes members from the authority and roads ministry. The matter is then referred to the Dispute Resolution Board (DRB), which again has members from NHAI and the roads ministry. An unsatisfied company can further take the case to civil courts. The BKC Committee had recommended the matters should be settled on case-tocase basis by an independent expert group. For disputes where the amount claimed by contract is less than Rs.10 crore or 5 per cent of the contract price (whichever is lower), the committee suggested NHAI might offer a onetime settlement of pending disputes. For cases where the amount involved is between Rs.10 crore and Rs.100 crore, the committee recommended award of arbitral tribunal might be accepted, particularly in cases where the unanimous decision at DRB level is upheld by tribunal. For cases where the amount involved is beyond Rs.100 crore, the committee recommended the government might carefully consider the award of tribunal before challenging in a court and take it up with the arbitral tribunal/court for early hearing and disposal of all pending cases as cautious measures would enable significant savings in interest payment. - www.business-standard.com